UK consumer spending is forecast to grow at the slowest pace in six years, the latest EY ITEM Club special report on consumer spending, said. Nonetheless, spending is seen continuing to outperform the economy as a whole.

The think tank forecast consumer spending to grow 1.6 percent in 2019, 1.7 percent in 2020. The economy is expected to log 1.3 percent growth and 1.5 percent expansion in 2019, 2020, respectively.

According to EY ITEM Club, households' real disposable income is set to grow at slower pace in the next two years after 2018 spike and is likely to be significantly below the post-war average.

"We forecast employment growth to slow from 1.2 percent in 2018 to 1.0 percent in 2019 and 0.6 percent in 2020," Howard Archer, chief economic advisor to the EY ITEM Club, said.